OfflineHi,
THis will be my first investment property. I will be renting out for a small cashflow after purchase.
I just spoke to a lender that my agent said was good. I asked him if he would be interested in working with an invester. I told him I am looking to use my HELOC to purchase a property in full. Then I wanted to then take out a 30 yr fixed and pay off the HELOC. I said I wanted 100% on the 30 year. Then after paying back the HELOC we will be repeating the process over and over again.
He told me that 100% is no longer available, best case scenario on a rental property is going to be at 90%, with that maybe even being lowered to 85% in the near future.
We have excellent credit, a very large HELOC at 70% of our homes value and will only be using a small portion to buy the rental property outright.
Is this guy being truthfull that there is no more 100% on rental properties or should I keep trying until I find a lender that will work with 100%? Do they exsist?
Thanks!
Angie
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME" 
Is this guy being truthfull that there is no more 100% on rental properties or should I keep trying until I find a lender that will work with 100%? Do they exsist?
Thanks!
Angie
yes, my understanding is that there is no more 100% NOO financing. I believe 80/20 or 90/10/10 is the best you ar going to get.
Believe the lender is being straight with you. 100% money is pretty much a thing of the past. Now, there may be some private investors who will do it--but finding them is yet another issue, and the interest rate and short-term aspect yet another. An FHA 403(b)for rehabs is not easy either. If you roll them out of your inventory and don't hold them a long time, you can probably work it one at a time, but would need to have a savy lender who understands what you are doing.
Texas Irish Lady
Texas Irish Lady
I appreciate your input. I have now heard a few times that the 90% being offered isn't bad. I don't think it will be necessary for me to try to g with a private lender.
The lender told me after purchasing with my HELOC in full & doing the small repairs I can get a new appraisal. With the new appraisal I should be able to re-coup some, if not all, of the money. I will also provide the lease and canceled checks to prove the property is cashflowing, which should help. Thanks again.
Angie
Challenges are only challenges if you view them that way. Try looking at them as OPPORTUNITIES instead and success will follow!!! "ME"
He is being truthful. Since the market has been changing so drastically all lenders have tightened there guides and the lending business has become very strict on who and how much they lend. However, you can do an FHA on an investment and just put down 3%.
If you would like to contact me I can give you more details. My name is Maria Vasilakos and you can reach me at 571-334-3299.